Baker Inc Acquired Equipment from the Manufacturer on 10/1/09 and Gave

Baker Inc. acquired equipment from the manufacturer on 10/1/09 and gave a noninterest-bearing note in exchange. Baker is obligated to pay $918,000 on 4/1/10 to satisfy the obligation in full. If Baker accrued interest of $9,000 on the note in its 2009 year-end financial statements, what is its imputed annual interest rate?

A) 2%
B) 4%
C) 6%
D) None of these is correct.$9,000 was interest for 3 months in 2009.The note lasts 6 months, so 2 $9,000 = $18,000 is the total interest for 6 months; the rest is principal.$18,000/$900,000 = 2% for 6 months, or 4% annually.